An ERP implementation in 6 months or less? Is it possible? In this article, Robert Jurcec reveals the truth about the length of time it takes t as a part of the key steps for ERP implementation.
ERP implementation can be daunting for any business, as it ties into many aspects and processes of the company. A well-developed implementation plan is key to success in any large-scale project. Breaking the implementation down into stages with specific goals in mind can increase your chances of success.
No matter what type of journey you’re embarking on, it’s always important to plan ahead and budget for your needs. The same is true for an ERP implementation project. By taking the time to establish clear direction, scope, and structure from the start, you can avoid major issues down the road.
What is an ERP implementation?
Implementing ERP can be a daunting task for any business, large or small. ERP systems integrate many divergent functions across the company, such as financial management, human resources, sales, manufacturing, inventory, and procurement. A successful ERP implementation can deliver significant benefits in terms of increased productivity and efficiencies while simplifying the complexities, the bottlenecks, and the manual workarounds.
However, because ERP systems automate and streamline so many different processes, they can also be very disruptive to a business that is not prepared for them.
The organisation needs a successful ERP implementation, so carefully defined requirements, and determining how processes can be redesigned to maximise the new ERP system’s functionality to the advantage of the business. Planning and a structured implementation plan are required for success.
ERP implementation strategy
An implementation strategy defines how a company or organisation will execute on a product. This often involves changes to business processes, development workflows, and organisational structures. An implementation strategy describes:
Key approaches to ERP implementation
The best approach to follow depends on a company’s business objectives, budget constraints, available resources, and time sensitivity. Several well-known implementation strategies include big bang, phased rollout, parallel adoption, and a combination of phased-rollout and parallel adoption. Each approach has its inherent advantages and disadvantages, so you will need to understand each and select the one that best caters to your requirements.
a. The Big Bang approach
With the Big Bang approach, a company deploys the entire ERP system at once for all business functions on a single go-live date.
In order to successfully complete a big bang approach, a lot of careful planning is required. This is because software is typically implemented on a set date, and any mistakes can have serious repercussions for all aspects of business. Therefore, it is essential to get things right the first time around.
| Advantages | Disadvantages |
|---|---|
|
|
b. The Phased approach
In this approach, ERP implementation does not have to happen all at once. It is staggered by business process, department, location, or manufacturing facility. This approach makes it easier on your resources and can help you ensure a successful transition to the new system.
With a phased approach, it takes more time to implement but there is a higher degree of safety because errors will not be impacting all business operations. The phased approach can put less pressure on the implementation team with fewer issues to worry over.
| Advantages | Disadvantages |
|---|---|
|
|
c. The Parallel approach
Implementing a new ERP system parallel to running legacy systems minimizes implementation risks. Should critical errors arise with the new system, you can default to the old one.
Running two systems at the same time can create technical difficulties, such as data synchronization problems. It also increases implementation costs since you will need both implementation and IT experts throughout the process.
| Advantages | Disadvantages |
|---|---|
|
|
The two most common ERP implementation methodologies
The two most common implementation methodologies are:
1. Waterfall
ERP software implementations traditionally follow a linear, “waterfall” progression. However, requirements often change, making it impossible to strictly adhere to this methodology.
Despite this, many ERP implementations still operate under this basis, with specific steps that must happen in a certain order. The waterfall ERP implementation methodology phases may look like this:
- Discovery
- Planning
- Design
- Development
- Testing
- Go/Live Deployment
- Training
- Support & Maintenance
2. Agile
The agile delivery method offers many benefits over the traditional waterfall approach, including increased flexibility and speed. With agile, project plans are divided into short intervals with solution testing occurring at the end of each sprint. This allows for adjustments to be made as soon as problems or changes occur, instead of waiting until the end of the project.
- All stakeholders across the business are seeing all aspects of the solution as it’s built throughout the sprints
- Contributes to better solution ownership and acceptance)
- Better software that meets stakeholder’s prioritised needs
- Faster time to value by releasing new features every day
- Quicker recognition of ROI (Return on Investment) with less waste and incremental funding
- Higher customer satisfaction as feedback is incorporated during delivery
- Greater visibility, confidence, and trust between stakeholders
Our FlexSafe methodology framework incorporates experience and best practice to ensure the key pillars of business are taken into consideration and delivered:
- Cost: Reduce cost by automating tasks and processes where possible, enabling stakeholders to engage in higher-value activities and delivering to stakeholders during deployment.
- Revenue: effective use of revenue by ensuring full visibility of all financial data in real-time, allowing for quick and meaningful decisions.
- Efficiency: increase efficiency by connecting data sources across the organisation, allowing full visibility and transparency to stakeholders to enable decisions and actions.
- Risk: reduce the risk of missed or inaccurate data by connecting all relevant systems and providing accurate real-time information to the right stakeholders in the right format
Grant Robson, Financial ControllerHave you got questions about ERP implementations?
If you are considering an ERP solution, take a look at what we do, how we got here, and how NetSuite works. Our FlexSafe™ methodology ensures that every NetSuite implementation is meticulously executed that is transparent, collaborative and increases user adoption by reducing change resistance. We have a proven track record of success in business access, process expertise, and providing scalable cloud solutions. Our award-winning team helps you make the most of NetSuite, so you can focus on what really matters – your customers, your people, and your business.
Schedule a demo time in our calendar, or if you want more information call us on 1800 155 683.
